72 Free cash flow in the Group. Deutsche Telekom defines free cash flow as cash generated from operations less interest paid and net cash outflows for investments in intangible assets (excluding goodwill) and property, plant and equipment. Deutsche Telekom believes that free cash flow is used by investors as a meas- ure to assess the Group’s cash generated from operations (after deductions for interest paid and cash outflows for investments in intangible assets (excluding goodwill) and property, plant and equipment), in particular with regard to sub- sidiaries, associates and joint ventures, and the repayment of debt. In adopting this definition, Deutsche Telekom reflects the fact that investments in new tech- nologies and efficiency enhancements in operating activities enable tied-up capital to be released. These inflows should therefore be taken into account in assessing investment expenditure and included in free cash flow accordingly. Free cash flow should not be used to determine the financial position of the Group. A further factor to be noted is that Deutsche Telekom’s definition of free cash flow and its methods of computing this measure are comparable with similarly designated measures and disclosures by other companies only to a limited extent. Gross and net debt of the Group. Gross debt includes not only bonds and liabilities to banks, but also liabilities to non-banks from promissory notes, lease liabilities, derivative financial liabilities and cash collateral received for positive fair values of derivatives, as well as other interest-bearing financial liabilities. Net debt is calculated by deducting cash and cash equivalents as well as finan- cial assets classified as held for trading and available for sale (due ≤ 1 year). In addition, all derivative financial assets and other financial assets are deducted from gross debt. Other financial assets include all cash collateral paid for nega- tive fair values of derivatives as well as other interest-bearing financial assets. Deutsche Telekom considers net debt to be an important performance indica- tor for investors, analysts and rating agencies. EBITDA Q1 2011 millions of € EBIT/ Net profit Q1 2011 millions of € EBITDA Q1 2010 millions of € EBIT/ Net profit Q1 2010 millions of € EBITDA FY 2010 millions of € EBIT/ Net profit FY 2010 millions of € EBITDA/EBIT (adjusted for special factors) from continuing and discontinued operations 4,480 1,827 4,890 2,230 19,473 8,364 EBITDA/EBIT (adjusted for special factors) from discontinued operations (United States) 871 408 1,008 544 4,154 2,090 EBITDA/EBIT (adjusted for special factors) from continuing operations 3,609 1,419 3,882 1,686 15,319 6,274 Profit (loss) from financial activities (adjusted for special factors) (648) (702) (2,717) Taxes (adjusted for special factors) (157) (305) (1,152) Profit (loss) after taxes (adjusted for special factors) from discontinued operations 218 335 1,337 Profit (loss) (adjusted for special factors) 832 1,014 3,742 Non-controlling interests (adjusted for special factors) 131 123 378 Net profit (loss) (adjusted for special factors) 701 891 3,364